Why Is Bumble Laying Off Employees?
The online dating firm made the announcement in a securities filing, justifying that cutting costs is part of a reconfiguration strategy of its “operating structure to optimize execution on its strategic priorities,” as reported by CNBC.
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How Much Will the Layoffs Cost?
The layoffs will cost Bumble between $13 million and $18 million during the third and fourth quarters of this year, but the company’s management claimed that it expects this move would save the company around $40 million annually, according to the CNBC report.
Where Will the Savings Go?
Bumble also revealed that it has planned to invest its savings from the job cuts into new products and technology development, as per the report.
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Why Is Bumble Restructuring?
The firm’s plan to reduce its workforce comes during a time when the company’s founder, Whitney Wolfe Herd, who had previously stepped down as CEO at the beginning of 2024, returned to the role again earlier this year, as reported by CNBC.
While, the shares of the dating app company have dropped since its debut on the public markets in 2021, and even the firm’s market value has declined to about $538 million from $7.7 billion as of Tuesday’s close, as reported by CNBC.
Has Bumble Updated Its Financial Outlook?
However, other than revealing plans for the company’s job cuts, Bumble also updated its previously announced forecast for the current quarter, according to the report.
Bumble has revised that its projected revenues will range between $244 million and $249 million, and adjusted EBITDA between $88 million and $93 million, as reported by CNBC.
According to the CNBC report, the new projection for the company has increased from $235 million to $243 million in revenue and $79 million to $84 million in adjusted EBITDA forecast with Bumble’s first-quarter results last month.
FAQs
How many Bumble employees will lose their jobs?
About 240 employees, or 30% of Bumble’s workforce, will be affected by the layoffs, as per a CNBC report.
How much money is Bumble saving from this?
Bumble says it will save about $40 million per year, as per the CNBC report.
